Legal origin and financial development: A propensity score matching analysis

Glauco De Vita; Chengchun Li; Yun Luo

doi:10.1002/ijfe.2167

Legal origin and financial development: A propensity score matching analysis

Glauco De Vita, Chengchun Li, Yun Luo

Research output: Contribution to journal › Article › peer-review

8 Citations (Scopus)

142 Downloads (Pure)

Abstract

We revisit the impact of legal origin on financial development using propensity score matching and a new financial development index on a sample of 178 countries over 1980–2016. German civil law countries are found to have the strongest positive impact on financial development. English common law countries follow. French and Scandinavian civil law countries have a negative impact on financial development while Socialist legal origin records no significant effect. When decomposing the measure of financial development into financial markets and financial institutions' development, we find that German civil law promotes both while English common law promotes only financial institutions development.

Original language	English
Article number	IJFE2167
Pages (from-to)	535-553
Number of pages	19
Journal	International Journal of Finance and Economics
Volume	27
Issue number	1
Early online date	9 Oct 2020
DOIs	https://doi.org/10.1002/ijfe.2167
Publication status	E-pub ahead of print - 9 Oct 2020

Bibliographical note

This is the peer reviewed version of the following article: [De Vita, G, Li, C, Luo, Y. Legal origin and financial development: A propensity score matching analysis. Int J Fin Econ. 2022; 27: 535– 553. https://doi.org/10.1002/ijfe.2167], which has been published in final form at [10.1002/ijfe.2167]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.

This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Keywords

financial development
financial institutions
financial markets
legal origin
propensity score matching

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

Access to Document

10.1002/ijfe.2167

Post-PrintAccepted author manuscript, 1.23 MB

Cite this

@article{c24e56cd38a34f95a0dc9eca03ad2067,

title = "Legal origin and financial development: A propensity score matching analysis",

abstract = "We revisit the impact of legal origin on financial development using propensity score matching and a new financial development index on a sample of 178 countries over 1980–2016. German civil law countries are found to have the strongest positive impact on financial development. English common law countries follow. French and Scandinavian civil law countries have a negative impact on financial development while Socialist legal origin records no significant effect. When decomposing the measure of financial development into financial markets and financial institutions' development, we find that German civil law promotes both while English common law promotes only financial institutions development.",

keywords = "financial development, financial institutions, financial markets, legal origin, propensity score matching",

author = "{De Vita}, Glauco and Chengchun Li and Yun Luo",

note = "This is the peer reviewed version of the following article: [De Vita, G, Li, C, Luo, Y. Legal origin and financial development: A propensity score matching analysis. Int J Fin Econ. 2022; 27: 535– 553. https://doi.org/10.1002/ijfe.2167], which has been published in final form at [10.1002/ijfe.2167]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley{\textquoteright}s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited. This document is the author{\textquoteright}s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it. ",

year = "2020",

month = oct,

day = "9",

doi = "10.1002/ijfe.2167",

language = "English",

volume = "27",

pages = "535--553",

journal = "International Journal of Finance and Economics",

issn = "1099-1158",

publisher = "Wiley",

number = "1",

}

TY - JOUR

T1 - Legal origin and financial development

T2 - A propensity score matching analysis

AU - De Vita, Glauco

AU - Li, Chengchun

AU - Luo, Yun

N1 - This is the peer reviewed version of the following article: [De Vita, G, Li, C, Luo, Y. Legal origin and financial development: A propensity score matching analysis. Int J Fin Econ. 2022; 27: 535– 553. https://doi.org/10.1002/ijfe.2167], which has been published in final form at [10.1002/ijfe.2167]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited. This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

PY - 2020/10/9

Y1 - 2020/10/9

N2 - We revisit the impact of legal origin on financial development using propensity score matching and a new financial development index on a sample of 178 countries over 1980–2016. German civil law countries are found to have the strongest positive impact on financial development. English common law countries follow. French and Scandinavian civil law countries have a negative impact on financial development while Socialist legal origin records no significant effect. When decomposing the measure of financial development into financial markets and financial institutions' development, we find that German civil law promotes both while English common law promotes only financial institutions development.

AB - We revisit the impact of legal origin on financial development using propensity score matching and a new financial development index on a sample of 178 countries over 1980–2016. German civil law countries are found to have the strongest positive impact on financial development. English common law countries follow. French and Scandinavian civil law countries have a negative impact on financial development while Socialist legal origin records no significant effect. When decomposing the measure of financial development into financial markets and financial institutions' development, we find that German civil law promotes both while English common law promotes only financial institutions development.

KW - financial development

KW - financial institutions

KW - financial markets

KW - legal origin

KW - propensity score matching

UR - http://www.scopus.com/inward/record.url?scp=85092178410&partnerID=8YFLogxK

U2 - 10.1002/ijfe.2167

DO - 10.1002/ijfe.2167

M3 - Article

SN - 1099-1158

VL - 27

SP - 535

EP - 553

JO - International Journal of Finance and Economics

JF - International Journal of Finance and Economics

IS - 1

M1 - IJFE2167

ER -

Legal origin and financial development: A propensity score matching analysis

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Glauco De Vita

Cite this

Legal origin and financial development: A propensity score matching analysis

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Profiles

Glauco De Vita

Cite this